Description:
Mercantile Bankshares is a holding company with more than $6.5 billion in assets, operating 21 banks with more than 160 offices in Maryland, Virginia and Delaware. It also has a mortgage banking affiliate in Baltimore.

Developments:
Mercantile Bankshares continued its expansion by announcing in December its plans to acquire Farmers Bank of Mardela Springs, Md., through its Peninsula Bank affiliate, for about $3.9 million.

The level of the holding company's consolidated loans rose 8 percent last year, to $4.4 billion, which contributed to a 7 percent increase in net interest income, to $310.6 million. Noninterest income rose 11 percent as a result of higher fee income and gains on investment securities.

Consolidated net income rose 12 percent last year, to $117.4 million, from $104.4 million in 1995. That lifted income per share to $2.46 from $2.19.

Net charge-offs of bad loans were $8.3 million last year, down from $10.7 million in 1995 and about the same as in 1994. Nonperforming assets at the end of the year were $23.8 million, or 0.52 percent of total loans and other real estate owned. The allowance for loan losses was nearly five times the amount of nonperforming loans.